Oakley Municipal Code Ch. 5.15 Short-Term Rentals

[1]

Code reviser’s note: Ord. 06-20 adds this chapter as Chapter 5.14. This chapter has been editorially renumbered to avoid duplication.

This chapter shall be referred to as the "Short-Term Rental Ordinance."

(Ord. 06-20, 5/12/2020)

a. The purpose of this chapter is to establish regulations for the use of privately owned dwelling units as short-term rentals in order to minimize the adverse effects of short-term rentals on the surrounding residential neighborhoods, ensure that short-term rentals are consistent with the City’s municipal code, and preserve the residential character of the neighborhoods where short-term rentals are located.

b. This chapter is not intended to provide any person with the right or privilege to use a dwelling unit as a short-term rental where such use is not otherwise allowed by law, homeowner’s association agreement, rental agreement, or any applicable conditions, covenants, and restrictions to the dwelling unit that may prohibit the use of such dwelling unit as a short-term rental.

(Ord. 06-20, 5/12/2020)

For purposes of this chapter, the following words and phrases shall have the following meanings:

a.

"Applicable laws, rules and regulations"

means any laws, rules, regulations and codes (whether local, State or Federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term rental.

b.

"Applicant"

means the owner of the short-term rental unit or the owner’s authorized agent or representative.

c.

"City Manager"

means that person acting in the capacity of the City Manager of the City of Oakley or his or her designee.

d.

"Good neighbor brochure"

means a document prepared by the City that summarizes the general rules of conduct, consideration, and respect, including without limitation provisions of the Oakley Municipal Code and other applicable laws, rules, or regulations, pertaining to the use and occupancy of short-term rental units.

e.

"Hosted stay"

means a short-term rental unit where the owner remains on site throughout the guest’s stay (except during daytime and/or work hours).

f.

"Owner"

means the owner of a dwelling unit who rents their primary residence as a short-term rental unit and who is responsible for compliance with this chapter. The owner shall be available 24 hours per day, seven days per week for the purpose of: (1) responding within sixty (60) minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term rental unit; and (2) taking remedial action to resolve any such complaints.

g.

"Primary residence"

means an owner’s permanent residence as documented by at least two of the following and in the owner’s name: motor vehicle registration, driver’s license, voter registration, tax documents showing the dwelling unit as the owner’s residence, or a utility bill. A person may only have one primary residence and must reside there for a minimum of nine months per year.

h.

"Property"

means a residential legal lot on which the short-term rental unit is located.

i.

"Responsible person"

means a transient occupant of a short-term rental unit who is at least twenty-five (25) years of age and who is legally responsible for ensuring that all transient occupants of the short-term rental and their guests comply with all applicable laws, rules, and regulations pertaining to the use and occupancy of a short-term rental.

j.

"Short-term rental permit"

means a permit that allows the use of a privately owned residential dwelling as a short-term rental unit pursuant to the provisions of this chapter.

k.

"Short-term rental unit"

means an accessory use of a privately owned residential dwelling, such as, but not limited to, a single-family dwelling or multiple-family building, apartment unit, condominium, or duplex, for the purposes of providing temporary lodging, for compensation, for periods of thirty (30) consecutive days or fewer. Any dwelling unit used as a short-term rental unit shall be considered a "hotel" for the purposes of Chapter 3.2 related to uniform transient occupancy tax.

l.

"Transient"

for purposes of this chapter means any person who seeks to rent or who does rent a short-term rental unit for a period of thirty (30) consecutive days or fewer.

m.

"Unhosted stay"

means a short-term rental unit where the owner remains off site during the guest’s stay.

n.

"Vacation rental"

means a short-term rental unit that is not an owner’s primary residence. A vacation rental unit does not include a hotel or motel, as those terms are defined at Section 9.1.202, or other business in which rooms are rented as the principal use of a building devoted to lodging.

(Ord. 06-20, 5/12/2020)

Vacation rentals, as defined in this chapter, are a prohibited use and shall not be operated within the City of Oakley, except as set forth below.

a. Vacation Rental. The short-term rental may be a vacation rental only if the residence is located within the boundaries of the adopted SP-4 (Downtown Specific Plan) District, subject to the regulations in Section 5.15.124 (Vacation Rental Regulations).

(Ord. 06-20, 5/12/2020; Ord. 10-26, 9/8/2026)

The owner shall be personally responsible for compliance with the requirements of this chapter and shall be subject to any applicable remedies for noncompliance, regardless of whether such noncompliance was committed by the owner or the occupants of the short-term rental unit or their guests.

(Ord. 06-20, 5/12/2020)

a. It shall be unlawful for an owner to rent any short-term rental unit to any transient without having a valid short-term rental permit issued by the City pursuant to the provisions of this chapter.

b. A short-term rental permit shall be valid for a period of one year from the date of issuance, and shall be renewed on or prior to the anniversary of the original permit issuance to remain valid.

c. A short-term rental permit may not be transferred to another owner, does not run with the land, and is valid only for the original location for which it is issued.

(Ord. 06-20, 5/12/2020)

a. The owner must submit the following information on a short-term rental permit application form provided by the City:

1. The name, address, and telephone number of the owner of the short-term rental unit;

2. The address of the proposed short-term rental unit;

3. The number of bedrooms and the applicable overnight and day-time occupancy limit of the proposed short-term rental unit;

4. Acknowledgment that the owner has received and reviewed the good neighbor brochure and will provide the brochure to all transients;

5. A copy of a transient occupancy registration permit issued under Section 3.2.006(d);

6. Such other information as the City Manager deems reasonably necessary to administer this chapter; and

7. Payment of the application fee established separately by resolution of the City Council.

b. A short-term rental permit application may be denied if the applicant has had a prior short-term rental permit for the same unit revoked within the twelve (12) calendar months that preceded the effective date of the application.

c. Within fourteen (14) days of a change of property ownership or any other change in material facts pertaining to the information contained in the short-term rental permit application form, the owner shall submit an application and requisite application fee for a new short-term rental permit, which must be obtained prior to continuing to rent the short-term rental unit.

(Ord. 06-20, 5/12/2020)

a. The applicant has the burden of proof to demonstrate compliance with each applicable criterion for approval or renewal of the permit.

b. To receive permit approval, an applicant must demonstrate the following:

1. The owner shall demonstrate that it will comply with all the obligations and requirements of Sections 5.15.116 and 5.15.118.

2. A completed checklist for fire safety (fire extinguishers, smoke alarms, carbon monoxide detectors, etc.) shall be required with each annual permit application and renewal. It is the owner’s responsibility to ensure that the short-term rental unit is and remains in substantial compliance with all applicable laws, rules and regulations including those regarding fire, building and safety, and health and safety.

3. At the time of application, the owner of a short-term rental shall not have been found to be in noncompliance of any provision of this Code for the subject short-term rental unit. A voluntary assurance of compliance or negotiated compliance agreement will satisfy the requirement that there be no pending actions or violations.

4. The owner shall have a current business license in accordance with Chapter 3.5.

5. The owner shall have obtained a transient occupancy registration certificate for purpose of its obligation to pay transient occupancy taxes under Chapter 3.2.

(Ord. 06-20, 5/12/2020)

a. The owner shall use reasonably prudent business practices to ensure that the short-term rental unit is used in a manner that complies with all applicable laws, rules, and regulations pertaining to the use and occupancy of the subject short-term rental unit, including this chapter.

b. The minimum number of days that a short-term rental unit shall be occupied is three days, two nights. Occupancy of a short-term rental unit by any transient for fewer than three days, two nights is prohibited.

c. The maximum number of overnight guests for a short-term rental unit shall not exceed two persons per bedroom, except that children under the age of four shall not be counted for purposes of calculating this limitation so long as the children sleep in the same bedroom as at least one of their parents or legal guardians. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m., with the maximum daytime guests not to exceed two persons per bedroom with a maximum of sixteen (16) guests allowed for four bedrooms or more. The following table illustrates the maximum number of occupants:

d. A short-term rental unit shall not change the residential character of the outside appearance of the residence, either by the use of colors, materials, lighting, or any advertising mechanism.

e. All parking associated with a short-term rental unit shall be entirely on site, in the garage, carport, and driveway or otherwise off of the public street.

f. Occupants of the short-term rental unit shall comply with all standards and regulations stated in Chapter 4.2 concerning noise.

g. The owner shall provide each occupant of the short-term rental unit with the following information prior to occupancy of the unit and shall post such information in a prominent location within the unit:

1. The contact information for the owner with twenty-four (24) hour availability;

2. The maximum number of overnight occupants and the maximum number of daytime occupants as permitted under this chapter;

3. Trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash on the exterior of the property;

4. A copy of Chapter 4.2 concerning noise; and

5. Notification that the occupant or owner may be cited or fined by the City in accordance with this Code.

h. The short-term rental shall be a hosted rental for the duration of any occupancy by a transient, except as set forth below.

1. Unhosted Stay. The short-term rental may be an unhosted (stay) rental only if the residence is located within the boundaries of the adopted SP-4 (Downtown Specific Plan) District.

(Ord. 06-20, 5/12/2020; Ord. 10-26, 9/8/2026)

a. While a short-term rental unit is rented, the owner shall be available twenty-four (24) hours per day, seven days per week for the purpose of responding within sixty (60) minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term rental unit or their guests.

b. The owner shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the short-term rental unit.

c. Prior to occupancy of a short-term rental unit, the owner shall obtain the name, address, and a copy of a valid government identification of a responsible person and require such responsible person to execute a formal acknowledgment that he or she is legally responsible for compliance by all occupants of the short-term rental unit and their guests with all applicable laws, rules, and regulations pertaining to the use and occupancy of the short-term rental unit.

d. Prior to occupancy of a short-term rental unit, the owner shall obtain from the responsible person the make, model and license of all vehicles of overnight occupants’ vehicles to be parked at the property.

e. The owner shall, upon notification that the responsible person and/or any occupant and/or guest of the short-term rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term unit, promptly respond within sixty (60) minutes in an appropriate manner to immediately halt or prevent a recurrence of such conduct by the responsible person and/or any occupants and/or guests. Failure of the owner to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the short-term rental unit within sixty (60) minutes in an appropriate manner shall be subject to all administrative, legal, and equitable remedies available to the City.

f. The owner shall report to the City Manager the name, violation, date, and time of disturbance of each person involved in three or more disorderly conduct activities, disturbances, or other violations of any applicable law, rule, or regulation pertaining to the use and occupancy of the subject short-term unit within twenty-four (24) hours of the third violation or disturbance.

g. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the City’s authorized waste hauler on scheduled trash collection days. The owner shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter 4.20.

h. The owner shall post the current short-term rental permit number on or in any advertisement appearing in any newspaper, magazine, brochure, trade paper, website, etc., that promotes the availability or existence of a short-term rental unit.

i. The City Manager shall have the authority to impose additional conditions on the use of any short-term rental unit to ensure that any potential secondary effects unique to the subject short-term rental unit are avoided or adequately mitigated.

j. The standard conditions set forth herein may be modified by the City Manager, or designee, upon request of the owner based on site-specific circumstances for the purpose of allowing reasonable accommodation of a short-term rental unit. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short-term rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of the standard conditions shall not further exacerbate an already existing problem.

(Ord. 06-20, 5/12/2020)

a. A violation of any provision of this chapter by any occupant or owner shall constitute grounds for modification, suspension, or revocation of the short-term rental permit. In addition, the failure of the owner to satisfy any of its obligations and requirements in Chapter 3.2 concerning transient occupancy taxes shall be an independent basis for modification, suspension, or revocation of any permit issued under this chapter.

b. Whenever any owner fails to comply with any provision of this chapter, the City, after giving the owner ten (10) days’ written notice specifying the time and place of a hearing before the City Council, and requiring him to show cause why the short-term rental permit should not be modified, suspended, or revoked, may modify, suspend, or revoke the permit held by the owner.

c. The City may enforce this chapter, including the terms and conditions of any permit granted under this chapter, by any means provided for in Chapter 1.5 or by any other means authorized by law.

(Ord. 06-20, 5/12/2020)

The City Council may establish and set by resolution all fees and charges as may be necessary to effectuate the purpose of this chapter.

(Ord. 06-20, 5/12/2020)

a. Applicability. Vacation rentals, as defined in this chapter, are prohibited within the City of Oakley except as authorized pursuant to Section 5.15.107. No person shall operate a vacation rental unless a valid short-term rental permit has been issued and continues to be renewed annually in a timely manner pursuant to this chapter.

b. Permit Limit. Vacation rentals authorized pursuant to Section 5.15.107 shall be subject to a maximum of 10 active short-term rental permits at any given time.

c. Initial Permit Selection. If the number of complete applications received during an application period exceeds the number of permits available, the City shall review the applications in the order they were submitted.

d. Failure to submit the required information within the prescribed time shall constitute grounds for denial of the application or removal from the waiting list, as applicable.

e. Denial of Application. If the City Manager determines that an applicant has failed to satisfy the requirements of this section or any other applicable provision of this chapter, the City Manager may deny the application by providing written notice to the applicant stating the basis for the denial.

f. Permit Conditions. In addition to the Operations standards in Section 5.15.116, the vacation rental must comply with the following:

1. It is the intent of the City to enforce sections of the Streets and Highways Code related to the provision for emergency vehicle access. Accordingly, no limousine or bus parking, and no stopping without the driver's presence, shall be allowed in any manner that would interfere with emergency vehicle access. In the event of an emergency, the vehicle driver shall immediately move the vehicle from the emergency access area.

2. The permittee shall ensure that the renters and/or guests of the vacation rental do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this code or any state law pertaining to noise or disorderly conduct; provided, however, that the City does not intend to authorize, and the City does not authorize, the permittee to act as a peace officer or place himself or herself in harm's way. The permittee shall, upon notification that renters and/or guests of his or her vacation rental have violated any house rules (including any unreasonable noise or disturbances, disorderly conduct, or violations of this Code or state law) promptly act to stop the violation and prevent a recurrence of the violation.

3. It is prohibited to use the vacation rental unit for any wedding, auction, commercial function, or other similar event that is inconsistent with the use of the property for transient occupancy in a residential neighborhood.

g. Notice of Permit Approval. Upon issuance of a vacation rental permit, the City Manager may provide notice to property owners within 500 feet of the vacation rental unit. The notice may include:

1. A summary of the terms of the permit, including the maximum number of overnight and daytime occupants, any applicable parking requirements, and any special conditions or restrictions imposed on the permit;

2. The contact information for the owner or other responsible contact person available 24 hours per day, seven days per week;

3. Information on how to report potential violations to the City; and

4. Information regarding any applicable appeal rights or procedures established by this Code.

h. Waiting List. The City shall maintain a waiting list when all 10 vacation rental permits have been issued. The Community Development Department will maintain and update the waiting list. Applicants shall be placed on the waiting list according to the order established through the City's application selection process.

1. The City shall maintain a waiting list when all 10 permits have been issued.

2. Applicants shall be placed on the waiting list according to the order established through the City's application selection process.

3. If a permit becomes available because of expiration, revocation, surrender, or non-renewal, the City Manager may offer the permit to the next eligible applicant on the waiting list. The applicant will have 15 days to respond if htye want to proceed with applying, not proceed, and/or the choice to remain on the wait list or be removed.

4. Applicants remaining on the waiting list shall continue in order until issued a permit, withdrawn by the applicant, or removed by the City for failure to maintain eligibility.

5. Applicants on the waiting list shall remain eligible for two years unless withdrawn, determined ineligible, or removed for failure to respond to City requests as set forth in the subsection.

i. Permit Expiration and Reissuance. Upon expiration, revocation, surrender, or nonrenewal in a timely manner of a short-term rental permit allowing a vacation rental, the vacation rental status will be forfeited and it shall become available for reissuance in accordance with the waiting list established under this section. Failure to renew prior to expiration shall result in automatic expiration without a grace period.

j. Additional Restrictions. Only one rental agreement per vacation rental unit shall be in effect at any one time.

(Ord. 10-26, 9/8/2026)

a. "Short-Term Rental Facilitator" for the purposes of this chapter shall have the same meaning as defined in the text for SB 346 (Short-Term Rental Facilitator Act of 2025), codified in California Government Code Title 5, Division 1, Part 1, Chapter 4.6, Section 50990 et seq.

b. Upon request by the City, each short-term rental facilitator shall report, for each short-term rental listed or booked through its platform within the City, the physical address, Assessor Parcel Number, ZIP code, and URL of the listing for each reporting period, as defined by the City.

c. Each short-term rental facilitator shall ensure that all listings for short-term rentals located within the City display the property's valid local license number and transient occupancy tax certification.

d. Failure to comply with reporting or listing requirements under this chapter shall subject the short-term rental facilitator to an administrative citation, pursuant to Chapter 1.5 (Penalties and Remedies) of the Oakley Municipal Code.

e. A short-term rental facilitator shall be found to be out of compliance with this chapter for each short-term rental not listed in compliance with this chapter, and each short-term rental found to be listed out of compliance with this chapter may result in a separate administrative citation.

(Ord. 10-26, 9/8/2026)